Wave C (red)
As predicted by the Elliott Wave Principle, we are now seeing the STI clearly forming Subwave 5 (black), the last leg of Wave C (red). The Wave ABC is a 3-3-5 flat, with Wave C typically ending slightly below the end of Wave A. So we should expect some more downside in the STI next week. It is possible for Wave C to end well below the end of Wave A, but I hope this won’t be the case.